Washington State lawmakers are considering multiple bills to address challenges in the childcare industry, including workforce conditions, accessibility, affordability, and regulatory barriers. Here are a few examples.

•  HB 1212: Requires cities and towns to allow childcare centers in all zones except industrial areas without special approval. Cities must update zoning regulations by 2027 or within two years to remove barriers and expand childcare access.

•  HB 1564: Creates a tax credit for businesses that provide childcare assistance, covering costs under B&O and public utility taxes, starting in 2026. The program will run until 2038, with evaluation measures to determine its impact on increasing employer-supported childcare.

•  HB 1582: Makes it easier to establish childcare centers in existing buildings such as churches by calculating occupancy limits based only on childcare areas. This change reduces costs and regulatory barriers, and encourages more childcare services in community spaces.

•  HB 1648: Extends the deadline for childcare provider training requirements to 2032 and allows experienced workers to meet qualifications through work experience instead of formal education. The bill also mandates accessible, multilingual training and a stakeholder review to improve workforce requirements.

•  SB 5062: Creates a Child Care Workforce Standards Board to set minimum wages and working conditions for childcare workers, with initial standards effective by 2027. Employers must comply with these standards, protect workers from retaliation, and compensate them for training.

•  SB 5310: Increases state subsidy rates for childcare providers starting in 2025, ensuring payments align with the market rates. The bill also mandates a cost estimate model, supports healthcare options for providers, and preserves collective bargaining rights.
​
While the final outcome of these bills remains uncertain, the breadth of the proposals demonstrates a strong legislative effort to address Washington’s childcare crisis and improve support for both providers and families.

The Tri-City Regional Chamber of Commerce, in partnership with the Washington Policy Center, recently hosted a roundtable discussion with local lawmakers to talk about important bills moving through the state legislature. This event gave business leaders and community members a chance to hear directly from their elected representatives and ask questions about policies that may impact them.

Attending the discussion were Rep. April Connors (R-Kennewick), Rep. Skyler Rude (R-Walla Walla), and Rep. Mark Klicker (R-Walla Walla). They provided some updates on key legislative issues, including property taxes, road usage charges, and executive powers.

These topics affect everyone in the Tri-Cities, from homeowners and business owners to daily commuters. Understanding how these laws might change can help residents stay informed and engaged in the political process. Our legislators want to hear from us and we should be letting our positions be known. 
​
The Chamber and the Washington Policy Center will continue to host events like this to keep the community updated. If you want to be part of the conversation, stay tuned for future meetings and opportunities to connect with lawmakers!

BudgetBreakdown.org is a website dedicated to explaining how Washington state's budget decisions affect residents' daily lives. It covers topics like gas prices, road maintenance, schools, housing costs, and homelessness, all linked to the state's financial choices. The site aims to help people understand the state's multibillion-dollar budget gap, exploring its causes and consequences. It also discusses how the state's spending habits can impact individual finances.

When a government spends more than it earns, it often faces a budget shortfall. To cover this gap, the state might raise taxes. For businesses in Washington, higher taxes can lead to increased operating costs. This can make it harder for companies to invest in growth, hire new employees, or even maintain current staffing levels. Small businesses, in particular, may struggle to absorb these extra expenses, potentially leading to closures or relocations.

Additionally, when taxes rise, consumers have less disposable income. This can result in reduced spending on goods and services, directly affecting businesses' revenues. Lower consumer spending means companies might sell less, leading to decreased profits. In turn, businesses may need to cut costs, which could include reducing their workforce or scaling back services.

Moreover, a history of overspending can create uncertainty in the business environment. Companies value stability when planning for the future. If businesses anticipate frequent tax increases or budget cuts due to the state's financial mismanagement, they might hesitate to invest or expand in Washington. This uncertainty can deter new businesses from setting up in the state, limiting economic growth and innovation.

In summary, the state's budgeting decisions have a significant impact on businesses. Overspending and the resulting overtaxing can increase operational costs, reduce consumer spending, and create an unstable economic environment. For Washington to maintain a thriving business community, it's crucial to balance spending with revenue and ensure financial decisions support both the public and the private sectors.
​
Stay tuned for more updates as we continue to track Washington's budget decisions and their impact on businesses and residents alike.

On February 5, the Association of Washington Business (AWB) hosted its annual Legislative Day & Hill Climb in Olympia, bringing together hundreds of employers to engage directly with state lawmakers. For the second time in two weeks representatives for Tri-City businesses gathered to make our voices heard in Olympia.

The day commenced with a welcome session at the AWB office, setting the stage for a series of face-to-face meetings between business leaders and legislators at the Washington State Capitol Campus. These discussions covered critical topics such as transportation, housing, healthcare, workforce development, tax and fiscal policies, energy, environmental concerns, employment law, manufacturing, and data privacy. 

A highlight of the event was the keynote address delivered by Governor Bob Ferguson during the luncheon at Saint Martin's University's Norman Worthington Conference Center. Governor Ferguson emphasized the importance of responsible budgeting and avoiding revenue assumptions that could lead to future shortfalls. He stated, "I'm determined as governor to make sure we learn from mistakes that we made as a state in making decisions on how we budgeted." 

Throughout the day, participants had the opportunity to meet with key legislators, including State Representative Greg Nance, D-Bainbridge Island, who engaged with AWB members on transportation issues. 

The event concluded with a legislative reception at Anthony's Homeport Olympia, providing a platform for further networking and discussions between business leaders and policymakers. 

Despite a snowy start, the 2025 AWB Legislative Day & Hill Climb was marked by productive dialogues and a shared commitment to addressing the pressing issues facing Washington's business community. 

Last week, the Tri-Cities Legislative Council, Leadership Tri-Cities, and local businesses brought a group of over 80 citizens to Olympia to meet with our legislative representatives. Our goal was to discuss the 2025 legislative priorities and explore ways to successfully advocate for them.

You can review the 2025 Legislative Priorities in our previous blog post.

While in Olympia, the Tri-Cities delegation heard from Senators Boehnke, King, and Dozier. They provided valuable insights into the current political climate, emphasizing that despite Governor Ferguson’s positive outlook, the state budget remains tight, making it challenging to secure funding from the legislature.

We also had the opportunity to hear from two freshman representatives from the 14th Legislative District: Gloria Mendoza and Deb Manjarrez. They shared their experiences as first-year legislators and expressed enthusiasm for representing the Tri-Cities region.

In addition, Representative Connors, the Minority Floor Leader, visited our group. Now, in her second term, she is establishing herself as a strong voice in the legislature, and we are all proud of her accomplishments.

Our agenda included a visit from David Puente, Director of the Washington State Department of Veterans Affairs, whose presentation on the Veterans’ Cemetery generated significant interest and discussion. We also had a surprise visit from Joe Nguyen, the new Director of the Washington State Department of Commerce. His presentation was engaging, and we look forward to collaborating with him in the future.
​
The day concluded with a Legislative Reception where we welcomed lawmakers from across the state. The Tri-Cities Legislative Council organizes this trip to Olympia every January. 

Washington House Bill 1184, introduced in the 2025 legislative session, proposes a specific exemption from overtime pay requirements for certain small businesses and nonprofit organizations. The bill aims to adjust the overtime-exempt salary threshold to 1.5 times the state minimum wage for these entities, which is approximately 25% lower than the current threshold. 

Impact on Small Businesses

For small businesses with fewer than 50 employees, this adjustment would provide greater financial flexibility. By lowering the salary threshold required for employees to be exempt from overtime pay, these businesses may find it more manageable to classify certain employees as exempt, thereby reducing overtime expenses. This change is intended to help small businesses maintain operations without the added financial strain of higher overtime costs. 

Implications for Nonprofit Organizations

Nonprofit organizations, particularly those with fewer than 50 employees, would similarly benefit from the reduced overtime-exempt salary threshold. The adjustment acknowledges the unique financial constraints of nonprofits, allowing them to allocate resources more effectively toward their missions. By easing the overtime requirements, nonprofits can better manage staffing costs while continuing to serve their communities. 

Legislative Status

As of January 16, 2025, HB 1184 has been prefiled and referred to the House Committee on Labor & Workplace Standards. A public hearing was held on January 15, 2025, to discuss the bill's provisions and gather input from stakeholders. 

In summary, HB 1184 seeks to create a narrow exemption from existing overtime provisions by lowering the salary threshold for overtime-exempt employees in small businesses and nonprofits. This legislative change aims to provide these organizations with increased financial flexibility, enabling them to manage labor costs more effectively while continuing to contribute to Washington State's economy and communities.

In Washington state, new legislation has been proposed to allow striking workers to receive unemployment benefits, even though they are able to work. Senate Bill 5041, prefiled for the 2025 legislative session, aims to provide unemployment insurance benefits to workers involved in strikes or lockouts. 

This proposal follows a similar attempt in 2024 with House Bill 1893, which sought to grant up to four weeks of unemployment benefits to striking workers. Despite passing the House, HB 1893 failed to reach the Senate floor before the cutoff deadline, effectively halting the bill for that year. 

While the intent of SB 5041 is to support workers during labor disputes, it raises concerns about potential negative impacts on businesses and the state's unemployment insurance (UI) fund.

Impacts on Businesses:

    • Increased Financial Burden: Employers fund the UI system through payroll taxes. Allowing striking workers to access these benefits could lead to higher taxes for businesses, as they would be responsible for covering the costs associated with strikes, even when not directly involved. 
    • Prolonged Labor Disputes: Providing financial support to striking workers might reduce the urgency to resolve disputes, potentially leading to longer strikes. Extended strikes can disrupt business operations, supply chains, and overall productivity. 

Impacts on the Unemployment Insurance Fund:

    • Strain on Resources: The UI fund is designed to assist workers who lose their jobs through no fault of their own. Extending benefits to those voluntarily striking could deplete resources, potentially affecting the fund's ability to support unemployed individuals genuinely in need.   
   • System Sustainability: An increased number of claims from striking workers may necessitate higher employer contributions to maintain the fund's solvency, further burdening businesses and possibly leading to increased costs for consumers. 
​
As the 2025 legislative session approaches, stakeholders, including business owners, workers, and policymakers, will need to carefully consider the implications of SB 5041. Balancing support for workers during labor disputes with the economic health of businesses and the sustainability of the unemployment insurance system will be crucial in determining the viability of this proposed legislation.

guiding_principles_jan_2025.pdfThe Tri-City Regional Chamber of Commerce is committed to fostering a vibrant, competitive, and sustainable business environment for our community. To achieve this, we carefully evaluate proposed legislation and policy changes through the lens of our Guiding Principles. These principles provide a consistent framework for assessing how legislation aligns with the core priorities of our business community and the broader regional economy.

Guiding Principles are more than a checklist; they reflect the values and objectives of our members. Using these criteria, we ensure that our advocacy efforts are focused on legislation that enhances economic growth, supports workforce development, reduces regulatory burdens, and fosters innovation. This approach enables us to provide informed, strategic input to policymakers while championing policies that contribute to the success of businesses in the Tri-Cities Region.

The Chamber developed the Guiding Principles in 12 categories. These categories include the following.
        • Agriculture
        • Childcare
        • Clean Energy
        • Economic Development and Innovation
        • Education and Workforce Development
        • Healthcare
        • Land Use and Housing
        • Local Intergovernmental Cooperation
        • Public Safety
        • Regulatory Reform
        • Taxes and Fiscal Stewardship
        • Transportation

You can learn more about the Guiding Principles here. 

Legislation can significantly affect businesses through changes in taxation, workforce regulations, infrastructure investments, and environmental standards. The Chamber recognizes that such policies can have both immediate and long-term effects on operational costs, competitiveness, and community well-being. Our Guiding Principles help us analyze these potential impacts, ensuring that our advocacy promotes a balanced and prosperous future for businesses of all sizes and industries.

By adhering to these principles, the Chamber serves as a trusted voice for the business community, advocating for policies that drive economic opportunity while safeguarding the region's unique character and values. Through collaborations with stakeholders and policymakers, we strive to create a thriving environment in which businesses can grow, innovate, and succeed.
​

​The Tri-Cities continue to grow and evolve, with significant changes reshaping their political landscape. For years, the region was primarily represented by the 8th, 9th, 16th, and portions of the 15th legislative districts. However, following recent redistricting efforts, the 9th legislative district has moved further east and the14th legislative district has been introduced, adding a new layer of representation to the community. This change brings new voices and opportunities to advocate for the interests of the region's residents and businesses.

With the inclusion of the 14th legislative district, the Tri-Cities now benefit from the insights and efforts of five new legislators, including three freshman lawmakers. Senator Curtis King, a seasoned and respected lawmaker, returned to represent the 14th district. Senator King brings years of experience and a proven track record of addressing transportation, education, and economic development issues—key areas for the Tri-Cities.

Joining Senator King in the 14th legislative district are Representatives Gloria Mendoza and Deb Manjarrez. Both are freshman legislators who bring fresh perspectives and renewed energy to the state legislature. Representative Mendoza, a long-time advocate for community development, is expected to focus on improving access to resources and opportunities for underserved populations. Representative Manjarrez, with a background in small business and is poised to champion initiatives that foster economic growth and streamline regulatory processes.

In addition, changes to the 15th legislative district introduced a new representation. Representative Jeremie Dufault is a freshman legislator who is eager to make an impact. His focus on fiscal responsibility and support for agriculture aligns with the region's priorities. Meanwhile, Representative Chris Corry, a returning lawmaker, took on a new role within the 15th district and the Republican House leadership. His experience and familiarity with legislative processes will serve as a stabilizing force during these transitions.

This expanded and reconfigured representation offers the Tri-Cities an exciting opportunity to amplify their voice in Olympia. Each legislator brings unique perspectives and areas of expertise that can address the diverse needs of the community. By advancing infrastructure projects to support local businesses, this team can potentially make meaningful progress in the region.

As the 2024 legislative session approaches, the Chamber of Commerce and local stakeholders look forward to engaging with new and returning lawmakers. Collaboration and communication will be key to ensuring the Tri-Cities’ priorities are well-represented at the state level. With a unified effort, the Tri-Cities region is well positioned to thrive under this new chapter of legislative leadership.

photo credit: Gloria Mendoza for State Representative